Correlation Between QBE Insurance and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both QBE Insurance and MAGNUM MINING at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining QBE Insurance and MAGNUM MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QBE Insurance Group and MAGNUM MINING EXP, you can compare the effects of market volatilities on QBE Insurance and MAGNUM MINING and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in QBE Insurance with a short position of MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of QBE Insurance and MAGNUM MINING.
Diversification Opportunities for QBE Insurance and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between QBE and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding QBE Insurance Group and MAGNUM MINING EXP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAGNUM MINING EXP and QBE Insurance is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on QBE Insurance Group are associated (or correlated) with MAGNUM MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAGNUM MINING EXP has no effect on the direction of QBE Insurance i.e., QBE Insurance and MAGNUM MINING go up and down completely randomly.
Pair Corralation between QBE Insurance and MAGNUM MINING
If you would invest 1,073 in QBE Insurance Group on September 3, 2024 and sell it today you would earn a total of 147.00 from holding QBE Insurance Group or generate 13.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
QBE Insurance Group vs. MAGNUM MINING EXP
Performance |
| Timeline |
| QBE Insurance Group |
| MAGNUM MINING EXP |
QBE Insurance and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QBE Insurance and MAGNUM MINING
The main advantage of trading using opposite QBE Insurance and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QBE Insurance position performs unexpectedly, MAGNUM MINING can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MAGNUM MINING will offset losses from the drop in MAGNUM MINING's long position.| QBE Insurance vs. INFORMATION SVC GRP | QBE Insurance vs. Fidelity National Information | QBE Insurance vs. PUBLIC STORAGE PRFO | QBE Insurance vs. DOCDATA |
| MAGNUM MINING vs. CHINA EDUCATION GROUP | MAGNUM MINING vs. INTERSHOP Communications Aktiengesellschaft | MAGNUM MINING vs. STRAYER EDUCATION | MAGNUM MINING vs. EEDUCATION ALBERT AB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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